Alpha | Dabur India Ltd. – Equity Research Desk

Dabur India Ltd. – An Ayurvedic FMCG Company

• Dabur was established by Dr. S K Burman in 1884 in Kolkata. Incorporated in 1936, the company operates in key consumer product categories like Hair Care, Oral Care, Health Care, Skin Care, Home Care, and Foods.
• It is one of the biggest FMCG companies with a presence in Ayurveda-based products across categories.
• It marries age-old traditional wisdom with modern-day science to develop products for consumers across generations and geographies.
• It has over 18 brands and sales of over Rs.100 Crs each.
• It offers products in over 100 countries across the globe and has manufacturing facilities at 21 locations—13 in India and one each in the UAE, South Africa, Sri Lanka, Egypt, Turkey, Nigeria, Nepal, and Bangladesh. 

Valuation :

Management’s focused approach on scaling up power brands through extension/variants, deeper distribution, and strong management bandwidth drives confidence in the sustainability of the company’s growth. However, near-term growth challenges and margins pressure remains. At CMP, the stock trades at 40x FY24E EPS. We recommend a BUY rating in the stock with the target price (TP) of Rs.585, 47x FY24E EPS.